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Senate passes fiscal cliff deal

January 1, 2013

By an overwhelming 89-to-8 vote, the Senate OK'ed a fiscal cliff package around 2 a.m. ET on New Year's Day.


Senate approves fiscal cliff deal 89-8 Jan 1 2013

Yep, tax geeks were watching the 97 Senators vote live on C-SPAN2. And I was sober!

Five Republicans — Chuck Grassley (R-Iowa), Mike Lee (R-Utah), Rand Paul (R-Ky.), Marco Rubio
(R-Fla.) and Richard Shelby (R-Ala.) — and three Democrats —
Michael Bennet (D-Colo.), Tom Carper (D-Del.) and
Tom Harkin (D-Iowa) — voted against the bill. 

Sens. Jim DeMint (R-S.C.), Mark Kirk (R-Ill.) and Frank Lautenberg (D-N.J.) missed the vote.

As blogged earlier, the deal maintains the current income and investment tax rates for most U.S. taxpayers, patches permanently the alternative minimum tax (AMT) and extends several other popular individual and business tax breaks.

The deal now goes to the House, which convenes at noon today. It's expected to pass, but you never know with this collection of Representatives.

After some sleep, I'll give the package a closer look and share the notable specifics.

Congressional pay raise nixed: I'm particularly interested in one late addition to the fiscal cliff deal.

While federal workers are scheduled to get a 0.5 percent pay raise in March per a recent executive order signed by Obama, the Senate fiscal cliff deal reportedly contains a provision that would prevent members of Congress, who are officially federal employees, from getting their $900-per-lawmaker increase.

That's a little bit of good PR, but not nearly enough to make up for the atrocious way this Congress has conducted itself when it comes to legislation. But that's for another blog post.

Now to sleep, perchance to dream of fiscal cliff deals.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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